Daily Insurance Industry News
Daily Insurance Industry News
Sunday 21st of January 2018
August 3, 2007

NU adds 10% to home insurance premiums

by Gill Montia

Story link: NU adds 10% to home insurance premiums

NU adds 10% to home insurance premiums

Norwich Union (NU) will be increasing its domestic property insurance premiums by an average of 10%, from mid-August.

The company, which forms part of the Aviva group, is the UK’s largest household insurer, covering around one in five dwellings in the UK.

NU says that the increase is not linked to the recent floods and that the timing of its announcement is coincidental.

It expects the bill for the summer floods to be in the region of £340 million but like other companies in the insurance sector, NU believes that it is too early to determine whether premiums will increase as a direct result of this summer’s claims.

However, the company has warned that households in flood risk areas can expect to see higher home insurance premiums than those in safe areas.

According to NU, the 10% rise in household insurance premiums is related to a number of factors, including an increase in levels of home improvement work, a rise in the number of bathrooms provided in homes, and a trend towards more expensive flooring.

Finally, Lloyds TSB has denied press reports that it is also raising household insurance premiums by 10%, again saying that it is too early to determine the effect of the floods on premiums.


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